Need to borrow some money to improve your home? Then a secured loan might be the answer. Also known as homeowner loans, a secured loan is one which, as the name suggests, is secured against the value of your home. In other words if you don’t keep up the repayments then in theory your home could be repossessed.

The main advantages of a secured loan over a personal loan are that, because it is secured against an asset like your property, you can borrow more (typically personal loans only go up to about £15,000) and secondly, interest rates tend to be lower.

They are also useful options for anyone who, for whatever reason, has a low credit score counting against them for getting a personal loan. But be aware; your credit score will have a bearing on how much you can borrow, as will the value of your equity (usually your home). Secured loans are more expensive than a traditional mortgage but you can take one out any time, regardless of whether your current mortgage deal is coming to an end or not.

These loans usually only have a one-month redemption penalty, so when your mortgage deal does come to an end you can consolidate your secured loan with your mortgage and only have the one repayment. Certainly worth considering if you need to borrow more than a personal loan will cover – for home improvements in particular. All secured loans are different and vary a lot depending on your personal circumstances. I can access a large range of lenders to get you the deal that is right for you so do get in touch if a secured loan might help you now or in the future.